Argentina Tasa De Interés

Argentina’s central bank cut its benchmark interest rate by 500 basis points to 35% on November 1, 2024 reflecting optimism about controlling the country’s severe inflation. This marks the seventh rate cut since President Javier Milei took office in December, when inflation was 133%. Milei’s administration has focused on tackling inflation, which has significantly dropped from over 25% monthly in late 2023 to around 3.5% in recent months. The central bank’s decision is based on improved liquidity and reduced inflation expectations, supported by Milei’s fiscal policies, which aim to tighten government spending. However, the sharp budget cuts have also caused economic slowdown and raised poverty levels above 50%. Despite annual inflation remaining over 200%, it has consistently decreased, reaching its lowest level since 2021. Additionally, Argentina’s tax amnesty program attracted $18 billion back to local banks, extending the program until November 8.